INVESTOR PRESENTATION Q1 2017
BUILDING A MID-CAP AFRICAN & EUROPEAN GAS COMPANY REGIONAL GAS STRATEGY TWO REMAINING STRATEGIC I T A UNDERPINNED BY PLAYS L Y Strong European gas demand and local pricing Badile (Italy) and Sidi Moktar (Morocco) Pan European / African Strategic Partnership BOLD GROWTH AGENDA with Schlumberger �������������������������������������������������� Supportive Cornerstone Investor ����������������������������������������������� STRONG THEMATIC POSITIONING Sheltered from recent oil price decline Carbon consciousness and global warming driving transition to gas BALANCED AND EVOLVING PORTFOLIO, INCLUDING LOW COST POTENTIAL O C C MULTI TCF DEVELOPMENT O R (TENDRARA: EASTERN MOROCCO) O M JOURNEY SO FAR... Slide Acquisition of Securing cost Introduction of Acquisition Introduction Successful 01 Italian onshore covering Cornerstone of Moroccan of Strategic drilling in gas portfolio production Investor onshore gas Partner Eastern portfolio Morocco Investor Presentation Rapagnano Continental Tendrara, Sidi Schlumberger TE6 & TE7 2017 Investment Partners Moktar, Meridja (Tendrara, Badile)
THE TEAM Brian Mitchener Leonardo Spicci EVP , Exploration EVP , Production & Development Over 36 years experience in Oil & Gas exploration Over 25 years experience in Oil & Gas including as Regional General Manager Exploration management and operations across James Parsons at BG, Vice President International Exploration for Kazakhstan, north Africa and Italy. Reservoir Chief Executive Officer Africa at Statoil and 22 years with BP Exploration. geologist background with 23 years with Chartered Geologist, and a past President of the ENI E&P Over 20 years in Oil & Gas Geological Society’s Petroleum Group strategy, general management, ���������������������� Europe, South America and Luca Madeddu Leonardo Salvadori Central America Managing Director, Morocco Managing Director, Italy 12 years with Royal Dutch Shell Over 30 years upstream experience with Over 25 years managerial experience across ENI and Dana Gas in exploration, business Europe, Asia and South America. Reservoir Specialist in restructuring, development and general management geologist background with 22 years with funding and growing small ENI E&P listed upstream companies; ������������������� Mary Hood Will Holland Joined Sound Energy in 2011 , Finance/CFO EVP EVP , Business Development Slide Mary has over 10 years upstream experience Over 20 years upstream experience across a 02 ���������������������������������������� ���������������������������������������������� Europe, Africa and the Middle East for Gulf roles. 10 years as an engineer with Halliburton. Keystone Petroleum (most recently as Deputy Subsequently Director in Macquarie’s Oil & CFO) and for Deloitte, in its Energy and Gas team Investor Resource practice. A Chartered Accountant Presentation and Company Secretary. 2017
COMPELLING REGIONAL CASE FOR GAS Badile Zibido Morocco Italy �� Low risk emerging market Stable demand with high gas Growing gas Rapagnano (7% annual growth) dependency penetration SMG �� Gas increasingly Strong domestic gas network replacing other fuels Dora / Dalla I T �� Circa 90% hydrocarbons Circa 90% hydrocarbons Disadvantaged A imported from Algeria imported from Algeria L supply position Y and Russia �� GME pipeline ownership transitions to Morocco in 2021 Recently introduced energy policy to encourage Laura �� New Gas Agency under commercialisation of domestic discussion hydrocarbons �� 10 year tax holiday 37.9% government net take Top quartile (24% corporation tax ((FY2017 fiscal terms �� Thereafter 35% net government onwards)), 3.9% regional income take (30% Corporation tax and tax plus 10% royalty above 5% royalty after 10.6) 0.9 annually) Tendrara I Meridja Tendrara II Slide Tendrara 03 Sidi Moktar Investor O C Presentation Exploration C 2017 O R O M
EASTERN MOROCCO N A E Tahaddart Power N FLAGSHIP DEVELOPMENT WITH A R R 2 x 400 MW E T I D E M MULTI TCF POTENTIAL Oued Dhar Doum TENDRARA El Makhazine 4 x 400 MW 2 x 400 MW (27.5% interest; 25% paying; Operated) Oujda MERIDJA (Meridja (55% interest; Operated*) C I T N Al Wahda A L Rabat Strategic Partnership where Schlumberger 120km Meridja 4 x 400 MW T A co-fund and technically de-risk the asset (Schlumberger 27.5% interest in Tendrara and Casablanca paying 80% on 1st well; 75% on 2nd and 3rd wells.) Continuity of the Algerian Triassic Province and Saharan Hercynian platform Tendrara Play type: gas discovery with condensate- light oil shows in the Lower Triassic sequence; TAGI and Paleozoic sand objectives Marrakech Tendrara, eight exploration permits 14,500 km 2 acreage, seven wells drilled; Meridja one O reconnaissance licence 9,000km2 C C ��������������������������������������������� O pre stimulation, 17 mmscf/d on test Slide R O A Potential for super-giant (multi Tcf) connected I M 04 R �������� E G L TE-7: 32 mmscf/d after clean up A Investor TE-8 (step out appraisal well) early 2017 Presentation 2017 Gas Maghreb-Europe Pipeline * Subject to the completion of option exercise Gas Pipeline Project
SHOWCASE TENDRARA: ILLUSTRATIVE AERIAL VIEW (TAGI ONLY) NEAR TERM POTENTIAL LONG TERM UPSIDE POTENTIAL MERIDJA 1,800 KM 2 TE-8 (Sound Energy: 2017) TE-2 (AGIP:1967) TE-9 (2018) 1-1.5 Tcf Provisional 75km 2 3-4 Tcf, location 250km 2 TENDRARA TE-6 300–500 (Sound Energy: 2016) PRESSURE Bcf 17km 2 TE-5 DEPTH TE-7 (Sound Energy: 2016) (MPE: 2006) PLOT TE-4 (MPE: 2006) TE-1 Slide (AGIP: 1966) 05 TE-3 (ONHYM: 1984) Investor Presentation 2017 All volumetric estimates are 100% - Gross TE4 data unreliable; requires re-entry.
PATHWAY TO COMMERCIALISATION CURRENT PHASE 2017 & 2018 2019 EPC Facilities Step-Out Finalise FIRST TE-8 Appraisal Development EPC Pipeline GAS plan & Development wells Concession Further step out wells application & re-entry Seismic acquisition Slide Self funding MATERIAL Return to 06 exploration & Shareholders CASH FLOWS development Investor Presentation 2017
NORTHERN ITALY STRATEGIC PLAY: BADILE 3D M I L A N O Net effective ownership Badile Seismic 80%; operated Zibido Coverage Po Valley (Northern Italy); 45 km SW of Rapagnano ���������������������������� SMG SNAM ������������������������������������������������������� Dora / Dalla Gas ������������������������������ T Pipeline A ������������������������������������������������ L Y ��������������������������� �������������������������������� Laura ���������������������������������������� Lacchiarella ��������������������������������� Badile ����������������������������������������������� ������������������������������������� Zibido ����������������������������������������������� ���������������������������������������������������� of the licence Low EUR 88m Badile Up to EUR 1,404 m Low Pavia Permit NPV10 (Best Estimate 37 Slide Best Best EUR 396 m) Badile 3D Pipeline +EUR O +105 308m Recoverable C Seismic 07 resource C 538 Bscf O R O M NPV10 High ocent 31/cbm) Investor +396 (Eurocent 31/cbm) Presentation Recoverable High 2017 resource (Bscf) +EUR 1,008m
Recommend
More recommend